The European Union is preparing to rapidly adopt a decision to indefinitely freeze up to €210bn of Russian sovereign assets. As The Financial Times notes, the goal is to prevent a potential veto from Viktor Orbán even before the EU summit begins. Brussels aims to protect the financial mechanism supporting Kyiv and preserve the stability of the sanctions regime.
The European Commission proposes invoking Article 122 of the EU treaties — an emergency instrument that allows sanctions decisions to bypass the requirement of unanimity. In practice, this would deprive Hungary of the ability to block the measure. According to The Financial Times, Brussels increasingly fears that if U.S. policy shifts, Orbán may attempt to derail the extension of sanctions.
EU diplomats are trying to separate the issue of permanently freezing the assets from the debate on a €90bn loan for Kyiv, which would be backed by revenues generated from the Russian funds. For the scheme to function, the assets must remain frozen indefinitely rather than for renewable six-month periods.
Budapest has sharply opposed the initiative. Government spokesperson Zoltán Kovács stated that the Commission’s proposal “crosses every red line.” At the same time, the United States has been urging the EU not to take steps involving the assets until a peace agreement is reached. Brussels, however, fears that delaying the decision creates political vulnerability: a sudden collapse of the sanctions regime could undermine the entire financial architecture supporting Ukraine.
Belgium plays a critical role because Euroclear — which holds €185bn of Russia’s assets — is located on its territory. Brussels fears legal claims from Russia and demands guarantees that all EU member states will share potential risks and costs. According to Ursula von der Leyen, the European Commission has “almost fully” addressed Belgium’s concerns, though the prime minister’s spokesperson declined to comment.
The attempt to bypass Orbán may deepen political tensions within the EU — similar to what happened during the migration policy reforms. But, The Financial Times argues, the EU’s priority now is to maintain control over the assets and ensure stable financing for Ukraine, even if this requires the use of exceptional procedures.
This article was prepared based on materials published by The Financial Times. The author does not claim authorship of the original text but presents their interpretation of the content for informational purposes.
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